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HR Focus: Federal and State Record-Keeping Requirements For Wage Data

Volume 10, Issue 5
May 11, 2011

Particularly in light of the increased enforcement efforts of the U.S. Department of Labor (DOL), Nevada employers should take a moment to verify they are properly preparing and maintaining the required records pertaining to their employees' wages and hours worked. Both federal and state law record-keeping requirements exist with some overlap.

Every employer covered by the Fair Labor Standards Act (FLSA) must maintain certain wage and hour records for each covered, nonexempt worker. There is no required form for these records, but they must include accurate information as to each employee's: (1) full name, as used for social security purposes, and on the same record, the employee's identifying symbol or number if such is used in place of the employee's name on any time, work or payroll records; (2) home address, including zip code; (3) birth date, if younger than nineteen; (4) sex and occupation in which employed; (5) time and day of week when employee's workweek begins; (6) hours worked each day; (7) total hours worked each workweek; (8) basis on which employee's wages are paid (e.g., "$9 per hour," "$440 a week," "piecework"); (9) regular hourly pay rate; (10) total daily or weekly straight-time earnings; (11) total overtime earnings for the workweek; (12) all additions to or deductions from the employee's wages; (13) total wages paid each pay period; and (14) date of payment and the pay period covered by the payment. See 29 C.F.R. § 516.1; DOL Fact Sheet #21. The FLSA also imposes additional recording-keeping obligations related to employees subject to certain exemptions under the FLSA. See 29 C.F.R. §§ 516.11 to 516.34.

Under the FLSA, all data used for payroll purposes must be preserved for three (3) years. Records on which wage computations are based must be preserved for two (2) years, i.e., time cards, piece work tickets, wage rate tables, work and time schedules and records of additions or deductions from wages. See 29 C.F.R. §§ 516.5 to 516.6.

Each FLSA-covered employer must keep all such wage and hour data accessible at the place(s) of employment, or at one or more established central recordkeeping offices. Where the records are maintained at a central recordkeeping office, other than in the place(s) of employment, the records must be made available within seventy-two (72) hours following notice from the DOL. See 29 C.F.R. § 516.7.

Under Nevada law, every employer is required to establish and maintain records of wages that show, for each pay period, the following information for each employee: (1) gross wage or salary other than compensation in the form of services or food, housing or clothing; (2) deductions; (3) net cash wage or salary; (4) total hours employed in the pay period by noting the number of hours per day; and (5) date of payment. Further, such information must be furnished to each employee within ten (10) days after the employee submits a request. These wage records must be maintained for a two (2) year period following the entry of information in the record. See NRS 608.115.

The Nevada Labor Commissioner or designated person may enter any public or private place of employment at any reasonable time to review records and gather facts necessary to enforce Nevada's labor laws. See NRS 607.150.

Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.